World Bank analysts predict the gold will continue its rise in prices next year and set new records. However, they caution that the price increases will be a modest 5% for the entire year. This modest rise stands in sharp contrast to the 50% surge that the precious metal has witnessed thus far in 2025.
The global body published an updated version of its commodity outlook indicating that in 2026, the average price of gold will be $3,575 per ounce. The World Bank also expects the price of silver in 2026 to hover around $41 per ounce in 2026, a 7.9% increase from its average price currently.
The analysts caution that the current increases in the prices of both precious metals could end as 2027 gets underway. In that year, the global development institution is of the view that the price of gold will be in the region of $3,375 per ounce. This will be a 5% drop from the expected price of the metal in 2026. Silver is expected to experience a 10% drop from its 2026 price, averaging $37 per ounce in 2027.
In their analysis, the World Bank explains that the recent rally witnessed in the market for gold can largely be attributed to investment demand. Other factors, such as geopolitical tensions, increased economic policy uncertainty, macroeconomic concerns, interest rate cuts in the U.S., and a weaker USD have further supported the gold rally. The analysts expect gold to register a year-on-year rally of 42% in 2025.
The team explains that the last time gold experienced a major rally was in 1979 to 1980. During that bull-run, the precious metal nearly doubled in price as inflation soared in the U.S. at a time when the dollar also weakened, oil prices experienced shocks, and there was geopolitical turmoil. This present rally has happened when several conditions that prevailed in the previous rally are also present, with the exception that the energy market hasn’t experienced the kind of shocks that happened in the bull-run of 1979 to 1980. Similarly, the current inflation pressures are a tiny fraction of what happened back then.
The World Bank says gold could experience some bearish pressure in 2027, but this will leave the price higher than the average level recorded in 2026. The institution points out that the outlook could change significantly in case trade frictions, tariffs or escalating conflicts occur in the foreseeable future. In such a case, gold could rally even more as investors seek safe haven for their portfolios.
In contrast, further easing of the conditions behind this current surge, such as a shift to increasing interest rates or an end to geopolitical tensions could exert downward pressure on prices. Management teams at companies like Torr Metals Inc. (TSX.V: TMET) will be keeping tabs on these factors and crunching the numbers to assess how they need to tweak their strategic plans as the gold market evolves.
NOTE TO INVESTORS: The latest news and updates relating to Torr Metals Inc. (TSX.V: TMET) are available in the company’s newsroom at https://ibn.fm/TMET
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